2024-04-02T17:03:43+00:00
A-
A
A+
/ Sources in the OPEC+ alliance suggested, on Tuesday, that the alliance will proceed with its production policy without making any changes to it during the meeting scheduled to be held tomorrow.
Reuters quoted the sources as saying that the group’s Joint Ministerial Monitoring Committee is unlikely to recommend any change in oil production policy during its meeting tomorrow, Wednesday, coinciding with oil prices reaching their highest levels this year.
The coalition, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies, will hold an online meeting of the Joint Ministerial Monitoring Committee tomorrow, Wednesday, to study market developments and members’ commitment to the production cuts they have already agreed to extend.
Oil prices have risen this year, supported by supply shortages, attacks on energy infrastructure in Russia and war in the Middle East.
Brent crude reached $89 a barrel today, Tuesday, up from $77 at the end of 2023.
Two of the sources, who requested that their names not be published because they are not allowed to speak publicly, said they expected a smooth meeting, and referred to the previous decision to extend production cuts.
The meeting is scheduled to take place at 11:00 GMT.
OPEC+ members, led by Saudi Arabia and Russia, agreed last month to extend voluntary production cuts by 2.2 million barrels per day to support the market.
The discounts are voluntary and are not divided among all group members.
Russian Deputy Prime Minister Alexander Novak said last Friday that Russia decided to focus on reducing oil production rather than exports in the second quarter in order to distribute production cuts equally with other OPEC+ member states.
When the voluntary reduction decision ends at the end of next June, the total cuts from OPEC+ are scheduled to decrease to 3.66 million barrels per day as agreed upon in previous steps that began in 2022.
The Joint Ministerial Monitoring Committee brings together the leading OPEC+ countries, including Saudi Arabia, Russia and the UAE.
The committee usually meets every two months and can make recommendations for policy change, and the recommendations can then be discussed and ratified at a full ministerial meeting of all members.